New Delhi: Nepal Prime Minister Sher Bahadur Deuba and CPN-Maoist Centre's chairman Pushpakamal Dahal Prachanda, in a meeting held on Saturday agreed to continue their ruling five-party alliance as the new majority government in the nation, reported a news agency PTI.


Political parties have intensified their efforts for the formation of new government as the results of Nepal's parliamentary elections under direct voting come closer to an end. Elections to the House of Representatives (HoR) and seven political assemblies were held on Sunday and the counting of those votes was done on Monday.


According to Ganesh Shah, a member of the CPN-Maoist Centre's Standing Committee, the two leaders discussed recent political developments and potential scenarios for the formation of a new government during the meeting. He said, "The two leaders have reached an understanding to continue the present ruling alliance," while showing confidence in the five-party alliance to have enough strength to form a majority government.


While talking to PTI, he said: "Janata Samajwadi Party led by Upendra Yadav will also join the ruling alliance led by the Nepali Congress and, with the support from both the Madhesi parties, we will have a comfortable majority to form the government."


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The alliance comprises of Nepali Congress led by PM Deuba, CPN-Maoist led by Prachanda, CPN-Unified Socialist-led by Madhav Nepal, Mahantha Thakur's Lokatantrik Samajwadi Party, and Chitra Bahadur led Rashtriya Janamorcha.


There are primarily two major political alliances that are contesting the polls - the ruling Nepali Congress-led democratic and leftist alliance and the CPN-UML-led leftist and pro-Hindu, pro-monarchy alliance.


Since the conclusion of the decade-long Maoist insurgency, political instability has frequently been a hallmark of Nepal's Parliament, and no Prime Minister has held office for a full term since the end of the civil war in 2006.


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The country's sluggish economic growth has been attributed to frequent upheavals and party warfare.


The upcoming government will have to balance maintaining a stable political system, revitalising the tourist sector, and maintaining good relations with China and India.


110 of the 275 members of the House of Representatives will be chosen via a proportional electoral system, while 165 will be chosen by direct vote. For a clear majority, a coalition or party requires 138 seats.


(With inputs from PTI)